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INDIAN RETAIL INDUSTRY

Today India is the fifth largest in the world in terms of Retail Industry In 2010 the retail trade accounts for 12 % of the country's GDP. Gradually the government started supporting the rural retail and many indigenous franchise stores came up with the help of Khadi & Village Industries Commission. Indian retail industry is one of the fastest growing industries. for example. with the change of tastes and preferences of the consumers. 00. especially over the last few years. 35.Size of the Industry Geographical distribution Output per annum Percentage in world market Market Capitalization By 2010 the organised Retail Sector in India is expected to triple its size. With the passage of time new entrants moved on from manufacturing to pure retailing. The food and grocery retail sector is expected to multiply five times in the same time frame. Today India is the fifth largest in the world in terms of Retail Industry. The present value of the Indian retail market is estimated to be around Rs. the industry is expected to grow at a pace of 25-30% annually. Comprising of organized and unorganized sectors. it rose to 12% in the year 2008 and expected to reach 22% in the next few years.000 crore shortly. These stores used to cater to the local people. 109. The Indian Retail Industry is expected to grow to US$ 700 billion in the year 2010 according to a report by Northbride . In 2009. etc. The market size of Indian retail industry is about US $312 billion In all the major Cities of the country With growing market demand. With growing market demand. the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from Rs. the industry is getting more popular these days and getting organized as well. Later Titan launched retail showrooms in the organized retail sector. S Kumar's. The first few companies to come up with retail chains were in textile sector. 12. Raymonds.000 crore ($270 billion) and the annual growth rate is 5. Though initially. History The origins for retail business in India can be traced with the emergence of Kirana stores and mom-and-pop stores. the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country in the year 2007. Indian Retail Industry is the most promising emerging market for investment According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney.7%. the retail industry in India was mostly unorganized. The economy began to open up in the 1980's resulting in the change of retailing. Bombay Dyeing.000 crore in 2004-05 to Rs.

strong income growth in the middle class population and favorable demographic patterns. A large young working population with median age of 24 years. The Food Retail Industry in India dominates the shopping basket. Indian retail is expected to grow 25% annually and expected that retail business in India could be worth US$ 175-200 billion by 2016.Capital. Modern retailing has entered into the country and as is observed in the form of bustling shopping centers. The growth pattern in organized retailing and in the consumption made by the Indian population will follow a rising graph helping the newer businessmen to enter the India Retail Industry. nuclear families in urban areas. ushering in a revolution in shopping in the country.7 billion business. entertainment and food all under one roof. Retail sector is one of India's fastest growing sectors with a 5% compounded annual growth rate. along with increasing working women population and emerging opportunities in the services sector are the key factors in the growth of the organized Retail sector in India. Due to the changing lifestyles. with the government policies becoming more favorable and the emerging technologies facilitating operations. growing at over 20 %per year. In the same year the organized sector will be 20% of the total market share as compared to the share of organized sector in 2007 was 7.5% of the total retail market. Brief introduction The Indian Retail Industry has come forth as one of the most dynamic and fast paced industries with several players entering the market. Market capitalization . Today due to Retail business the total concept and idea of shopping has undergone an attention drawing change in terms of format and consumer buying behavior. The future of the India Retail Industry looks promising with the growing of the market. multistoried malls and the huge complexes that offer shopping. Retail is India's largest industry and for over 10% of the India's GDP and around 8% of the employment. As India has a huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets. The Mobile phone Retail Industry in India is already a US$ 16.

the Indian Retail industry is worth $300 billion in terms of value. In the present scenario.00. Total contribution to the economy/ sales In 2010 the retail trade accounts for 12 % of the country's GDP and is expected to approach 22% according to Indian Brand Equity Foundation.900 crore is the largest of the different types of retail industries present in India.It has the following retail segments: . Size of the industry In the next fe years the organised Retail Sector in India is expected to triple its size. The market size of Indian retail industry is about US $312 billion. foresees the Indian consumer market growing by four times by the year 2025.The present value of the Indian retail market is estimated to be around Rs. ft retail space located across the country. The organised retailing comprises only 2. Retail market for food and grocery with a worth of Rs.7 billion and the organised retail sector is expected to grow to US $ 70 billion. Top leading Companies  Pantaloon Pantaloon is the most popular and biggest retailers in India with more than 450 stores across the country. 51% Foreign Direct Investment is permitted in India only through single brand retailing and FDI upto 100% allowed under the automatic route for cash and carry wholesale.7%.000 crore($270 billion) and the annual growth rate is 5. Furthermore around 15 million retail outlets help India win the crown of having the highest retail outlet density in the world. it has more than 5 million sq. The industry’s contribution to the Gross Domestic Product is about 10%. 7. The food and grocery retail sector is expected to multiply five times in the same time frame.8% of the total retailing market and is estimated at around US$ 8. Another analysis according to the Mckinsery 'The rise of Indian Consumer Market'. 12. 43.Headquartered in Mumbai. the highest compared to all other Indian Industries.

Wal-Mart Stores. Trent owns over 4 lakh sq. 90. Van Heusen. predicts an analysis by Ma Foi Management Consultants Ltd. Employment opportunities The retail sector has also contributed to 8% of the employment in the country.com Entertainment: Bowling Co. The group also has acquired the largest book and music retailer in India ‘Landmark’ in 2005. Latest developments  The BMI India Retail Report analysis for the third-quarter of 2010.. Style SPA Furniture Ltd. Through its strong linkages with sectors like tourism and hospitality. ft retail space across the country. Crossword.  Reliance Reliance is one of the biggest gaint players in Indian retail industry. With the expanding and developing middle and upper class consumer base. Ebony Retail Holdings Ltd. Indian Retail Industry would generate employment for more than 2. Health and Glow. there will also be opportunities in India's tier II and III cities. retail has the potential of creating jobs in these sectors also. with the food & grocery retailing. etc.Food & Grocery: Big Bazaar. Sitara E-tailing: Futurebazaar. Music World Entertainment Ltd. Fabmall. New entrants entering the market soon will be Reliance Retail Ltd. handicrafts.2 billion by 2014. which operates Westside and Star India Bazaar. Their would be . Titan Industries. Shoppers Stop. MTR Foods Ltd.000 crores. Ltd. Pantaloon Retail India Ltd. Lifestyle. Retail can create as many new jobs as the BPO/ITES sector in India.. according to various analysts.. Allen Solly. forecasts that the total retail sales will grow from US$ 353 billion in 2010 to US$ 543. Subhiksha. Food Bazaar Home Solutions: Hometown Furniture Bazaar Consumer Electronics: e-zone Shoes: Shoe Factory Books. Food Bazaar. Bata India Ltd. Globus Stores Pvt. Tesco. A strong retail front-end can also provide the necessary fillip to agriculture & food processing. Peter England are quite popular. Today the modern retail/retail services sector has the potential of creating over 2 million new (direct) jobs within the next 6 years in the country (assuming only 8-10% share of organized retailing).. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. Other popular brands are Archies. etc.  Tata Group Tata group established in 1998 is another major player in Indian retail industry with its subsidiary Trent.  AV Birla Group AV Birla Group has a strong presence in Indian apparel retailing with brands like Louis Phillipe..5 million people. Boots Group. It is expected that in the year 2010 its sales would reach to Rs. Music & Gifts: Depot Health & Beauty Care: Star. and small & medium manufacturing enterprises. creating millions of new jobs indirectly.  RPG Group RPG Group is one of the earlier entrants which were started in the year 1996 in the Indian retail market. Carrefour. Big Bazaar. Later it also opened the pharmacy and beauty care outlets ‘Health & Glow’.. Liberty Shoes Ltd.

according to the Department of Industrial Policy and Promotion in single-brand retail trading. the consumer spending in India climbed up to 75%.4%. stood at US$ 194. By the year 2013.69 million. Further analysts predict that sales through MGR outlets will increase by 154% to reach US$ 15. the organized sector is also expected to grow at a CAGR of 40%.3 trillion by the year 2018 at a CAGR of 10%. It is further expected to reach US$ 1. the India retail industry is expected to grow further in the future days. India today continues to be among the most attractive countries for global retailers. Foreign direct investment (FDI) inflows between April 2000 and 2010.     greater availability of personal credit and a growing vehicle population to improve mobility also contribute to a trend towards annual retail sales growth of 11. As a result. As the country has got a high growth rates. the consumer spending has also gone up and is also expected to go up further in the future. In the last four year. Worldwide Partner Inc are the Ninth largest global network of more than 90 marketing and communiation agencies in about 50 countries which has recently tied up with Indian Pressman Advertising and Marketing Ltd following repeated enquires about India. The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. In 2010 China and India are predicted to account for almost 91% of regional retail sales and in the year 2014 their share of the regional market is expected to be more than 92%. .29 billion by 2014.